What business needs from Scotlands National Transport Strategy

1
What business needs from Scotlands National
Transport Strategy

• Presentation to Scottish Executive Business
  Breakfast
• 27 April 2006
• Amanda Harvie, Chief Executive
• Scottish Financial Enterprise

2
Scottish Financial Enterprise (SFE) is the
independent organisation, formed in 1986, that
supports and represents the interests of
Scotlands financial services industry. Our
members encompass all sectors of the industry
including banks, insurance, fund management,
asset servicing, corporate finance and broking
services, professional advisors and support
services.
3

• Key focus of SFEs work
• Lobbying for improvements to the business
  environment that Scotland provides for the
  financial services industry
• Influencing government, regulators and other
  policy makers outwith Scotland, mainly in
  Westminster and Brussels, by facilitating
  engagement between them and our members
• Promoting greater awareness, understanding and
  support of Scotlands financial services
  industry, particularly among politicians and the
  media

4
Scotlands National Transport Strategy
Consultation

• Is the vital, not-to-be-missed opportunity to
  shape the policy framework for delivering 21st
  century transport infrastructure to secure our
  economic future!

5
Scotlands National Transport Strategy

• Must be
• 21st century world-class
• A catalyst for long-term economic success
• Deliver a major step-change in economic growth

6
Why transport matters to our financial service
industry

• An international industry competing in the global
  market and making a major contribution to the
  Scottish economy
• Over 300 years of innovation and excellence
• Scotland is now one of Europes leading financial
  centres and the second largest financial services
  hub in the UK next to London
• Many global financial services companies are
  headquartered and located in Scotland
• Particular strengths in banking general
  insurance, life assurance and pensions
  investment management asset servicing corporate
  finance and broking services, and a strong
  community of professional advisors and other
  suppliers
•  

7
Contribution of financial services to the
Scottish economy

• Financial services accounts for more than 10 of
  Scottish jobs, employing over 113,000 people
  directly and over 100,000 more in support
  services
• Financial services is the fastest growing sector
  of the Scottish economy. In the last five years
  (2000 Q3 to 2005 Q3) financial services in
  Scotland grew by 35.5 while the overall Scottish
  economy grew by 8.8 and the whole of the UK
  financial services industry grew by 16.6 in the
  same period
• Financial services generates over 6bn (more than
  6) of Scottish GDP measured as Gross Value Added
  and much more!

8
Source Scottish Executive GDP Index
9
Source Scottish Executive GDP Index
10
Industry agenda for the Scottish Executive

• An overarching strategy to further develop
  Scotland as a leading international financial
  services centre, focused on improvements to
• Transport and communications infrastructure
• Skills development and labour supply
• Cost and ease of doing business from Scotland
• Financial literacy education across Scotland
• Support of industrys lobbying agenda in
  Westminster and Brussels
• Brand identity and promotion
• Recognised by the Scottish Executive in the
  shared public/private sector Strategy for the
  Financial Services Industry in Scotland to ensure
  an innovative, competitive and thriving
  international financial services industry in
  Scotland, underpinned by world-class
  infrastructure and universally recognised as a
  leader on the global stage

11
Financial services future growth scenario

• Strong business optimism
• Continued growth in recruitment
• Opportunity for continued growth of international
  financial services industry in Scotland
• BUT
• Growing transport problems and connectivity
  challenges
• Risks in meeting demand for office space,
  services and housing
• Need for overarching strategy to improve
  infrastructure
• Neglecting the industrys connectivity needs will
  threaten its growth and economic contribution

12
Financial services industry satisfaction with
current transport infrastructure

• (Source SFE Report on the Connectivity Needs of
  Scotlands Financial Services Industry April
  2005)

13
How does Scotlands infrastructure
compare?(Source SFE Report on the
Connectivity Needs of Scotlands Financial
Services Industry April 2005)
14
Ranked top five transport initiatives for
financial services industry in Scotland(Source
SFE Report on the Connectivity Needs of
Scotlands Financial Services Industry April
2005)
15
Financial services connectivity needs1.
International

• Connectivity is key factor in location of mobile
  businesses
• Major contributor to economic growth and
  performance
• Route Development Fund has been successful in
  generating new direct routes from Scotland
• Expansion of Fund is welcome but must ensure
  business requirements are priority
• Direct routes required to key business
  destinations in EU, US and Asia

16
Financial services connectivity needs2.
National air and rail to London

• Need to at least upgrade East Coast Line by
  upgrading track and improving journey times and
  reliability
• More flights to London City airport from
  Edinburgh and Glasgow, especially in view of
  Docklands Light Railway
• Strong demand for more frequent flights and later
  evening departures

17
Financial services connectivity needs3.
Inter-regional

• Urgent need to improve links between Edinburgh
  and Glasgow airports and their city and business
  centres
• Need for improved connectivity between Edinburgh
  and Glasgow to form central hub
• high speed transport link
• completion of M8
• Strengthen road and rail links with other key
  areas, particularly Perth, Dundee, Aberdeen,
  Stirling, Fife

18
Financial services connectivity needs4.
Intra-regional

• Need for multi-modal links within cities,
  including
• High quality commuter bus shuttles
• Tram systems on high volume routes
• To deliver
• Faster, more efficient access and mobility
• Reduced congestion
• Improved living and working environment

19
Priority actions identified by SFE research

• Develop an overarching and interconnected
  transport and economic development strategy to
  include future office and residential needs of
  the financial services industry
• Create a financial services super-hub in
  Scotland centred on an Edinburgh-Glasgow axis
• Create a high-speed ground link between Edinburgh
  and Glasgow
• Improve connectivity by road and rail between
  Edinburgh and Glasgow and Perth, Dundee, Stirling
  and Aberdeen
• Address key bottlenecks, e.g. Forth crossings and
  the M8
• Create International Business Districts around
  Edinburgh and Glasgow airports
• Continue to invest in Route Development Fund to
  support key business destinations
• Gather international evidence on innovative
  funding and delivery of transport infrastructure
• Develop new ways of working with the private
  sector to deliver the transport needs of the
  financial services industry

20
The way forward for Scotland

• Accelerate delivery of current projects
• Abandon thematic and regionalised approach to
  national transport strategy development
• Make transport the catalyst for transformational
  long-term economic growth
• Maximise innovative funding and delivery
  mechanisms
• Embrace private sector expertise
• Align related policies and infrastructure to
  allow for successful delivery
• Be bold, ambitious and prepared to take risks
  in policy, solutions and delivery
• Benchmark quality of transport infrastructure and
  plans against global competition
• We must develop and deliver an overarching,
  long-term, 21st century transport strategy that
  will radically enhance the economic geography of
  Scotland to meet our future needs and deliver
  transformational long-term economic growth
• THE NATIONAL TRANSPORT STRATEGY MUST BE NOTHING
  LESS!

21
For further information contact Amanda
Harvie Chief Executive Scottish Financial
Enterprise 91 George Street Edinburgh EH2
3ES Tel [phone] Fax 44 (0)131
247 7709 Email info_at_sfe.org.uk Website
www.sfe.org.uk